Hospitals develop, sell tech to bring in cash

Technology is not just helping hospitals save money; in some cases it is helping them make it.

Both MedStar Health, in the Baltimore region, and Cleveland Clinic are developing and selling technology to supplement their overall revenue, according to an article in the Washington Post.

At a MedStar office in Washington, which houses the healthcare facility's Institute for Innovation, employees take ideas for new technologies thought up by hospital staff and turn them into realities that can sell for profit.

The institute is one example of an innovation space, a growing trend that allows hospitals to profit off innovation. 

"I think the theme is there's a huge amount of intellectual and creative talent capital in these large healthcare systems," MedStar Institute for Innovation Director Mark Smith told the Post.

Cleveland Clinic, meanwhile, has an additional reason beyond profit for making and selling technology--it's using the practice to recruit employees, Gary Fingerhut, CCI's executive director, told the Post.

Fingerhut said the practice is beneficial because hospitals are able to identify exactly what is needed to fit the workflow better than an outside company, and can create devices to meet those needs.

Other hospitals are profiting off of their own technology efforts, as well. For instance, Intermountain Healthcare, in collaboration with consulting firm Deloitte, created a data analytics tool that leverages information from electronic health records to improve patient treatment efforts.

Additionally, the University of Pittsburgh Medical Center is making money off tech, planning to sell analytics software it initially developed for its own use.

To learn more:
- read the Post article